TCRLA_Public/040415.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

             Thursday, April 15, 2004, Vol. 5, Issue 74

                            Headlines


A R G E N T I N A

AOL LATIN AMERICA: Notifies Stockholders of Annual Meeting
BANCO GALICIA: Shareholders' Meetings Slated for May
CISBEL: Court Rules in Favor of Involuntary Bankruptcy Motion
CLINICA MODELO: Reorganization Authorized, Claims Check Next
COPIAS DEL ALTO: Court Approves Creditor's Bankruptcy Motion

EL EDEN: Files Petition to Undergo Bankruptcy
IMPSAT: EBITDA Improves In 2003, Bankruptcy Rebound Continues
INMOBILIARIA Y AGROPECUARIA: Files Petition to Reorganize
MENLO: Bankruptcy Process Begins By Court Order
OFF ON: Initiates Bankruptcy Proceedings

PAPELERA MARINUCCI: Court Issues Bankruptcy Ruling
PAPELERA WILDE: Awaits Court's Ruling on Reorganization Petition
REGISER SA: Creditor's Bankruptcy Motion Granted
REYCOR: Court Rules In Favor of Creditor's Request
S.U.T.E.R.: Local Court OKs Reorganization Petition

SURYA: Declared Bankrupt by Court
TRANS SERVIS: Court Declares Company Officially Bankrupt
VICTORIO CARONELLO: Court Reviews Bankruptcy Petition
*Argentine Government To Meet With Bondholders


B E R M U D A

FOSTER WHEELER: Files Proposed Equity for Debt Offer Terms
ARACRUZ CELULOSE: Continues to Improve Liquidity, Debt Profile
CEMAR: To End Sale With New Board Selection
CESP: Repayment Due Date Moved, New Government Loan Detailed
EMBRATEL: Telmex Confident On Purchase Amid Challenge


C H I L E

METROGAS: Assures Steady Gas Supply


E C U A D O R

PETROECUADOR: 1Q Exports Down 7%


E L   S A L V A D O R

TESAL: Keeps Fitch "B" Rating; Cash Flow, Debt Level Troubling


M E X I C O

AEROMEXICO: Fitch Maintains 'B+' Outlook Stable Rating on Debt
AVANTEL/ALESTRA: Backs Bypass Practices Termination
CFE: S&P Expects Alternate Solution to Debt Financing
HYLSAMEX: Share Price Increases With 1Q Higher Forecast


     - - - - - - - - - -

=================
A R G E N T I N A
=================

AOL LATIN AMERICA: Notifies Stockholders of Annual Meeting
----------------------------------------------------------
AOL Latin America has announced that it will be holding its
annual meeting of stockholders on June 23, 2004, 2:00 p.m. at
The Americas Society located at 680 Park Avenue, New York, New
York.

MATTERS TO BE VOTED ON:   (1) a proposal to elect Donna J.
Hrinak, William H. Luers, M. Brian Mulroney and Robert S.
O'Hara, Jr. as members of our board of directors to serve for a
one-year term (except with respect to Ms. Hrinak, who would
serve a shorter term as noted below), and until their successors
are elected and qualified;

(2) a proposal to ratify our board of directors' selection of
Ernst & Young LLP as our independent auditor for 2004; and

(3) proposals to amend our restated certificate of
incorporation to:

     (A) effect a 1-for-2 reverse stock split of the issued and
outstanding shares of our common stock;

     (B) effect a 1-for-3 reverse stock split of the issued and
outstanding shares of our common stock;

     (C) effect a 1-for-5 reverse stock split of the issued and
outstanding shares of our common stock;

     (D) effect a 1-for-7 reverse stock split of the issued and
outstanding shares of our common stock;

     (E) effect a 1-for-10 reverse stock split of the issued and
outstanding shares of our common stock; or

     (F) effect a 1-for-15 reverse stock split of the issued and
outstanding shares of our common stock.

If the amendments set forth in proposals 3(A) through 3(F) are
approved as stated above, we will file with the Delaware
Secretary of State a certificate of amendment that will amend
our restated certificate of incorporation as set forth in one of
proposals 3(A) through 3(F), as determined by our board of
directors (or by a committee of our board). Notwithstanding the
approval of these amendments to our restated certificate of
incorporation, our board of directors (or a committee of our
board) may, in its sole discretion, determine not to implement
any reverse stock split and, therefore, abandon all of the
amendments.

We will also discuss and take action on any other business that
is properly brought before the meeting.

RECORD DATE: You may vote at the meeting if you were a
stockholder of record at the close of business on Wednesday,
April 28, 2004, the record date. If on Wednesday, April 28,
2004, your shares were held of record by a brokerage firm on
your behalf or another similar organization on your behalf, you
may vote at the annual meeting if you obtain a valid proxy card
from them issued in your name.

VOTING BY PROXY: Please return your proxy as soon as possible so
that your shares can be voted at the meeting according to your
instructions. For more instructions, please see the Questions
and Answers beginning on page 1 of this proxy statement and the
instructions on the proxy card.


   By Order of the Board of Directors


   David A. Bruscino
   Vice President, General Counsel
   and Secretary


BANCO GALICIA: Shareholders' Meetings Slated for May
----------------------------------------------------
BNamericas reveals that Argentina's largest bank, Banco de
Galicia y Buenos Aires SA, will be holding ordinary and
extraordinary shareholders' meetings on May 7, according to a
statement issued by the bank.

With more than 250 offices, Banco de Galicia offers loans to
businesses and individuals. It also provides consumer,
corporate, and investment banking; insurance; risk management;
and credit and debit cards. The bank has subsidiaries and
offices in neighboring Uruguay and Brazil, the Cayman Islands,
as well as in New York and London.

Banco de Galicia y Buenos Aires is controlled by the Escasany,
Ayerza, and Braun families, who together own 63% of the bank.
The families have held Banco de Galicia y Buenos Aires for more
than 50 years.


CISBEL: Court Rules in Favor of Involuntary Bankruptcy Motion
-------------------------------------------------------------
Judge Bavastro of Buenos Aires Court No. 17 declared Cisbel SRL,
which operates in the iron industry sector, bankrupt, reports
Argentine newspaper La Nacion. The ruling concurred with the
bankruptcy petition filed by Company creditor Norberto Grosso
for nonpayment of debts amounting to US$4000. Clerk No. 34, Dr.
Vanoli, assists the court on the case, the source adds.

The Company's receiver, Mr. Horacio Crespo, will examine and
authenticate creditors' claims until May 24, 2004. This is done
to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the receiver
by the said date in order to qualify for payments to be made
after the Company's assets are liquidated.

CONTACT: Cisbel SRL
         Virrey Arredondo 2225
         Buenos Aires

         Horacio Crespo, Receiver
         Maipu 464, piso 7ø, "614"
         Buenos Aires


CLINICA MODELO: Reorganization Authorized, Claims Check Next
------------------------------------------------------------
Buenos Aires Court No. 18 authorized Clinica Modelo Laferrere
S.A. to start its reorganization process. According to Infobae,
the Court, which is assisted by Clerk No. 36, granted the
Company's "Concurso Preventivo" motion, appointing "Picado,
Levy, De Angelis y Asociados" as receiver.

Creditors have until June 8, 2004 to submit their proofs of
claim to the receiver, who will verify these claims and submit
them to court as individual reports on August 5, 2004. After
these reports are processed in court, the receiver will prepare
the general report and submit it to court on September 17, 2004

The informative assembly, the last stage of a reorganization
process, will be held on March 21, 2005.

CONTACT:  Clinica Modelo Laferrere S.A.
          Desaguadero 3535
          Buenos Aires

          "Picado, Levy, De Angelis y Asociados"
          Bernardo de Irigoyen 330
          Buenos Aires


COPIAS DEL ALTO: Court Approves Creditor's Bankruptcy Motion
------------------------------------------------------------
Buenos Aires-based Copias del Alto SRL entered bankruptcy after
Judge Uzal of Court No. 26 approved a bankruptcy petition filed
by Alto Palermo SA, reports La Nacion. The Company's failure to
pay US$6,922 in debt prompted the creditor to file the petition.

Working with Dr. Gros, the city's Clerk No. 52, the court
assigned Mr. Ricardo Bonifatti as receiver for the bankruptcy
process. The receiver's duties include the authentication of the
Company's debts and the preparation of the individual and
general reports. Creditors are required to present their proofs
of claim to the receiver before June 3, 2004.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT:  Copias del Alto SRL
          Avenida Cordoba 540
          Buenos Aires

          Ricardo Bonifatti, Receiver
          Avenida Corrientes 123, piso 3ø
          Buenos Aires


EL EDEN: Files Petition to Undergo Bankruptcy
--------------------------------------------
Buenos Aires-based El Eden SRL, which commercializes food and
beverages, submitted a petition to undergo bankruptcy. According
to data obtained by La Nacion, the Company, which stopped paying
its debts since May 2000, now awaits decision from Court No. 14,
under Judge Sala, regarding its petition. Dr. Sarmiento Laspiur,
Clerk No. 28, assists the court on the case.

CONTACT:  El Eden SRL
          Teniente General Juan Domingo Peron 1740, piso 10ø
          Buenos Aires


IMPSAT: EBITDA Improves In 2003, Bankruptcy Rebound Continues
-------------------------------------------------------------
IMPSAT Fiber Networks, Inc. ("Impsat" or the "Company"), a
leading provider of integrated broadband data, Internet and
voice telecommunications services in Latin America, announced
its results for the fourth quarter and full year 2003. During
2003, the Company successfully emerged from Chapter 11 and
finalized the restructuring of the obligations covered by its
Plan of Reorganization. All figures are in U.S. dollars.

YEAR 2003 HIGHLIGHTS

(Includes three months of Predecessor Company operations and
nine months of Successor Company operations)

-- The Company recorded EBITDA of $40.2 million for the full
year 2003. This represents an increase of $6.5 million or 19%
over 2002 EBITDA of $33.7 million. For the three months ended
December 31, 2003, EBITDA was $8.3 million, a 146% increase over
EBITDA for the corresponding period of 2002.

-- During 2003, Impsat Brazil recorded positive EBITDA for its
first time ever, which totaled $1.7 million as compared to
negative $(3.8) million for 2002.

-- Cash flow provided by operating activities totaled $30.5
million, 10.9% more than during 2002.

-- Impsat Colombia issued a $16.1 million bond in the Colombian
capital markets to refinance existing debt, which marked the
Company's successful return to the capital markets nine months
after its emergence from Chapter 11.

-- Excluding the effects of the commercial restructuring of the
Company's arrangements with Global Crossing and the termination
of our operations in Mexico, revenues from services would have
remained at the same levels as compared to 2002. Net revenues
totaled $220.3 million for the full year 2003.

-- Cash, cash equivalents and trading investments at December
31, 2003 increased by $8.4 million, or 15.1%, as compared to
December 31, 2002. Cash, cash equivalents and trading
investments at December 31, 2003 totaled $64 million.

-- Capital expenditures for the full year 2003 totaled $21.5
million, which amount was entirely funded with internally-
generated cash.

-- Total debt was reduced during 2003 by $775.5 million to
$261.2 million at December 31, 2003 mainly as a result of the
successful completion of the Plan of Reorganization. In
addition, during 2003, the Company repaid $13.3 million of
indebtedness in the ordinary course of its operations.

-- Net income for the full year 2003 was $740.5 million, of
which $726.1 million corresponds to the effects of the Plan of
Reorganization.

-- Operating expenses totaled $214.7 million, a decrease of
$48.2 million or 18% as compared to 2002.

YEAR 2003 RESULTS

Overview

Impsat Fiber Networks Inc. is pleased to announce the results of
its operations for 2003, during which the Company successfully
emerged from its restructuring process and posted improved
operating margins and results.

On March 25, 2003, Impsat Fiber Networks formally emerged from
its Chapter 11 proceedings that were commenced in June 2002. In
accordance with the Company's reorganized capital structure as a
result of the Plan of Reorganization, Impsat's indebtedness has
been substantially reduced from $1.04 billion (including accrued
interests through the petition date) at December 2002 to $261.2
million at December 2003. The debt reduction resulted in lower
interest expenses and extended repayment periods.

Operating margins improved as a consequence of reduced operating
expenses during 2003. Operating expenses decreased by $48.2
million or 18.3% during 2003. Total operating expenses amounted
to $214.7 million during 2003, as compared to $262.9 million for
2002.

Our leased capacity costs for 2003 totaled $66.9 million, a
decrease of $7.8 million (or 10.4%) compared to 2002. This
decrease includes an overall reduction in costs for
interconnection and telephony termination costs. Our leased
capacity costs for satellite capacity for 2003 totaled $27.3
million, a decrease of $4.8 million or 15.0% compared to 2002.

Commenting on the results, Impsat CEO Ricardo Verdaguer stated:
"During the last several years, we have implemented various
measures to adapt our operations to the new global competitive
landscape. These have included the restructuring of our capital
structure and several actions to enhancing our operating
efficiency. During 2003, we began to see these actions deliver
value and add positive results to our operations. Not only have
we received the support from the majority of our creditors,
which allowed us to successfully complete our financial
restructuring, but at the same time, we have also managed to
improve our operating margins, including Impsat Brazil's posting
positive EBITDA for its first time ever.

Overall, 2003 has been a great year for Impsat. Our streamlined
operation sets the stage for and positions the Company's
regaining of its place in the development of telecommunication
services throughout Latin America. I believe that our presence
and knowledge in the markets will allow us to capitalize on the
economic recovery in Latin America and take advantage of the
increased demand for telecommunication services that we believe
will follow."

Revenues

Total net revenues for 2003 equaled $220.3 million, a 4%
decrease as compared to revenues for 2002. During 2003, the
Company's revenues from services were negatively affected by two
non-recurring events.

First, Impsat and Global Crossing settled a series of
outstanding disputes. The effect of this settlement, pursuant to
which Global Crossing agreed to assume its contracts with the
Company as part of Global Crossing's emergence from its
bankruptcy proceedings, was a $5.5 million reduction in our
revenues during 2003 as compared to the prior year. During 2002,
Impsat recognized $14.8 million in revenues from Global
Crossing, of which $10.6 million represented revenues for
services provided during 2002 and $4.2 million represented
revenue recognition on the prior sale of IRUs granted to Global
Crossing during 2000. During 2003, Impsat recognized $9.3
million in revenues from Global Crossing, of which $8.3 million
represented revenues for services provided during 2003 and $1.0
million represented revenue recognition for the sale of IRUs. We
believe that in the long term, both companies will benefit from
the settlement of these agreements. This agreement affected our
Broadband and Satellite line of business in Argentina, Brazil,
Chile, Peru and Venezuela.

Second, the closure of our operations in Mexico resulted in $3.1
million lower revenues as compared to the prior year. This
decision was taken in order to focus our strengths into more
profitable markets where Impsat enjoys better positioning.

Excluding the effects of these events, revenues from services
during 2003 remained at substantially the same levels as
compared to revenues from services during 2002.

Broadband and Satellite Revenues were $162.2 million for 2003
and represented 74% of our total net revenues from services.
Revenues from value added services increased 8.1% during 2003
compared to 2002. Total value added services for year 2003
totaled $15.4 million and represented 7% of our total net
revenues from services.

We experienced lower Internet revenues principally because of
pricing pressure in the wholesale market. Internet revenues
accounted for $24 million, or 11%, of our total net revenues
from services for 2003.

Our telephony revenues increased during 2003 as compared to 2002
mainly as a consequence of our increased delivery during 2003 of
switched voice services to corporate customers in Argentina,
increased traffic at higher rates, and international call
terminations to end-user customers in Peru. Also, the launch of
telephony corporate services in Peru helped to increase
telephony revenues. Telephony revenues totaled $17.7 million for
the year 2003 and represented a 23.4% increase as compared to
the previous year. Telephony services revenues represented 8% of
our total net revenues from services for 2003.

Revenue Breakdown by Country

Total net revenues at Impsat Argentina during 2003 totaled $58.6
million, an increase of $2.0 million, or 3.6%, compared to 2002.
Revenues of Impsat Argentina accounted for 24.4% of the total
consolidated net revenues of the Company.

Impsat Brazil's total net revenues for 2003 totaled $30.5
million, compared to $35.8 million during 2002. Revenues of
Impsat Brazil accounted for 13.1% of the total consolidated net
revenues of the Company.

Impsat Colombia recorded total net revenues of $54.6 million
during 2003, compared to $58.3 million for 2002. Revenues of
Impsat Colombia accounted for 23% of the total consolidated net
revenues of the Company.

Total net revenues at Impsat Venezuela equaled $34.9 million for
2003, compared to $31.6 million for 2002. Revenues of Impsat
Venezuela accounted for 12.9% of the total consolidated net
revenues of the Company.

Operating Expenses

Operating expenses for the twelve-month period ended December
31, 2003 totaled $214.7 million. Operating expenses for the year
2003 decreased by $48.2 million, or 18.3%, as compared to 2002.
This decrease results from the Company's continued efforts to
streamline its operating expenses and lower depreciation
expenses as a result of adjustments in our depreciable assets.

Our leased capacity costs for 2003 totaled $66.9 million, a
decrease of $7.8 million or 10.4% compared to 2002. This
decrease includes an overall reduction in costs for
interconnection, terrestrial and telephony termination costs.
Our leased capacity costs for satellite capacity for 2003
totaled $27.3 million, a decrease of $4.8 million, or 15.0%,
compared to 2002.

Despite of the appreciation of local currencies in Argentina and
in Brazil, salaries and wages and selling, general and
administrative (SG&A) expenses for 2003 decreased by $4.3
million, or 5.7%, as compared to 2002. Salaries and wages for
2003 totaled $46.4 million, a decrease of $1.5 million (or 3.2%)
compared to 2002. SG&A expenses for 2003 totaled $25.4 million,
which represents a decrease of $2.8 million, or 10.0%, compared
to 2002. Our SG&A expenses for 2003 declined principally because
of cost control measures undertaken by management.

Depreciation and amortization expenses for 2003 totaled $48.9
million, a decrease of $33.9 million, or 40.9%, compared to
2002. This decrease in depreciation and amortization expenses is
primarily due to the reduction in the value of our depreciable
fixed asset base in connection with the application of "fresh
start reporting" as a result of our emergence from the Chapter
11 reorganization process.

Operating expenses include non-recurring gains on extinguishment
of debt of $14.3 million during 2003, compared to a gain of
$16.4 million during 2002. This gain is attributable to our
settlement in full of certain of our operating subsidiary vendor
financing obligations that were not resolved as part of the
restructuring plan.

Effect of Foreign Exchange Losses and Gains

We recorded a net gain on foreign exchange for the twelve months
ended December 31, 2003 of $27.5 million, compared to a net loss
of $91.9 million for 2002. The net gain on foreign exchange was
primarily due to the appreciation of the Argentine peso and the
Brazilian real on the book value of our monetary assets and
liabilities in Argentina and Brazil.

Operating (Loss) Income and Net (Loss) Income

For 2003, the Company recorded net income of $740.5 million.
This compares to net losses of $204.5 million in 2002. Our net
income for 2003 was principally due to the effects of the gain
on extinguishment of indebtedness pursuant to the Plan and our
gain on the extinguishment of other debt subsequent to the
emergence from Chapter 11. For the year 2003, Impsat recorded
operating income of $5.6 million compared to operating losses of
$32.7 million during 2002.

EBITDA

The Company achieved positive EBITDA of $40.2 million,
representing a $6.5 million, or 19.3%, increase over EBITDA from
the previous year.

Impsat Brazil posted positive EBITDA for the first time ever and
totaled $1.7 million during year 2003, as compared to negative
($3.8) million for the previous year.

EBITDA margin in 2003 reached 18.3%, compared to 14.6% in 2002.

Liquidity and Capital Resources

Our total cash, cash equivalents and trading investments at
December 31, 2003 totaled $64 million. This compares to cash,
cash equivalents and trading investments of $55.6 million at
December 31, 2002.

Operating activities provided $30.5 million of cash during 2003
as compared to $27.5 million for 2002.

Non-GAAP Financial Measures

The Company presents EBITDA as a supplemental measure of
performance because it believes that EBITDA provides a more
complete understanding of our operating performance before the
impact of investing and financing transactions. EBITDA and
EBITDA margins are among the more significant factors in
management's evaluation of Company-wide performance. EBITDA can
be computed by adding depreciation and amortization to operating
income (loss), excluding gains on extinguishment of debt. The
reconciliation of EBITDA to Operating Income (Loss) is presented
in Appendix I Supplemental Financial Information in this Press
Release. EBITDA (earnings before interest, taxes, depreciation,
amortization, and non-recurring items) should not be considered
as an alternative to any measure of operating results as
promulgated under accounting principles generally accepted in
the United States such as operating income or net income, nor
should it be considered as an indicator of our overall financial
performance. EBITDA does not fully consider the impact of
investing or financing transactions as it specifically excludes
depreciation and interest charges, which should also be
considered in the overall evaluation of results. Moreover, our
method for calculating EBITDA may differ from the method
utilized by other companies and therefore comparability may be
limited.

Impsat Fiber Networks, Inc. is a leading provider of fully
integrated broadband data, Internet and voice telecommunications
services in Latin America. Impsat operates an extensive pan-
Latin American high capacity broadband network in Brazil,
Argentina, Chile and Colombia using advanced technologies,
including IP/ATM switching, DWDM, and non-zero dispersion fiber
optics. The Company has also deployed thirteen facilities to
provide hosting services Impsat currently provides services to
nearly 2,800 national and multinational companies, government
entities and wholesale services to carriers, ISPs and other
service providers throughout the region. The Company has local
operations in Argentina, Colombia, Venezuela, Ecuador, Brazil,
the United States, Chile and Peru. Additional information is
available www.impsat.com.

To see financial statements: http://bankrupt.com/misc/Impsat.txt


INMOBILIARIA Y AGROPECUARIA: Files Petition to Reorganize
---------------------------------------------------------
Inmobiliaria y Agropecuaria Candela S.A., a Buenos Aires real
estate agency, filed a "Concurso Preventivo" motion, reports La
Nacion. The Company is seeking to reorganize its finances
following cessation of debt payments since August 2001. The
Company's case is now pending before Court No. 8, under Judge
Gonzalez, who is assisted by Clerk No. 16 Dr. Saravia.

CONTACT: Inmobiliaria y Agropecuaria Candela S.A.
         Castex 3392
         Buenos Aires


MENLO: Bankruptcy Process Begins By Court Order
-----------------------------------------------
Buenos Aires Court No. 26 declared Menlo S.A. "Quiebra," reports
Infobae. The declaration signals the Company to proceed with the
bankruptcy process, which will close with the liquidation of its
assets. The court, assisted by Clerk No. 52, appointed Mr. Pablo
Javier Kainsky as receiver who will authenticate proofs of claim
until June 7, 2004. Creditors who fail to have their claims
validated before the deadline will be disqualified from
receiving any payments to be made after the Company's assets are
liquidated.

After verifying creditor claims, the receiver will prepare the
individual reports based on the results of the authentication
and then submit these reports to the court on July 21, 2004.
After these results are processed in court, the receiver will
then submit the general report on September 16, 2004.

CONTACT:  Menlo S.A.
          Maipu 872
          Buenos Aires

          Pablo Javier Kainsky
          Reconquista 715
          Buenos Aires


OFF ON: Initiates Bankruptcy Proceedings
----------------------------------------
Buenos Aires Court No. 9 declared Off On S.A. "Quiebra," reports
Infobae. Clerk No. 18 assists the court on the case, which will
close with the liquidation of the Company's assets to repay
creditors.

Mr. Juan Alberto Krimerman, the court-appointed receiver, will
verify creditors' claims until June 8, 2004 and then prepare the
individual reports based on the results of the verification
process.

The individual reports will then be submitted to court on
August 4, 2004 followed by the general report on September 15,
2004.

CONTACT: Off On S.A.
         Alvarado 2647
         Buenos Aires

         Juan Alberto Krimerman, Receiver
         Uruguay 594
         Buenos Aires


PAPELERA MARINUCCI: Court Issues Bankruptcy Ruling
--------------------------------------------------
Papelera Marinucci S.A.C.I. will now enter bankruptcy after
BuenosAires Court No. 19 declared it "Quiebra," reports Infobae.
With assistance from Clerk No. 37, the court appointed Mr.
Eduardo Aguinaga as receiver.

Creditors must present their claims to the receiver before June
8, 2004 in order to qualify for the payments that will be made
after the Company's assets are liquidated.

Following claims verification, the receiver will submit the
individual reports, which were prepared based on the
verification results, to the court on August 4, 2004. The
general report is due for submission on September 15, 2004.

CONTACT:  Eduardo Aguinaga, Receiver
          Maipu 374
          Buenos Aires


PAPELERA WILDE: Awaits Court's Ruling on Reorganization Petition
----------------------------------------------------------------
Papelera Wilde SRL, a Buenos Aires-based paper manufacturer, is
requesting permission to undergo a reorganization process,
according to data obtained by Infobae.

The Company, which stopped paying debts since June last year,
submitted a "Concurso Preventivo" petition listing assets
amounting to US$623,444.52 and liabilities of US$499,049.84.

The case is now pending before Buenos Aires Court No. 13 under
Judge Villar, who is assisted by Dr. Cardama, Clerk No. 26.

CONTACT:  Papelera Wilde S.R.L.
          Tte Gral. Juan Domingo Peron 1215
          Buenos Aires


REGISER SA: Creditor's Bankruptcy Motion Granted
------------------------------------------------
Judge Ferrario of Buenos Aires Court No. 6 declared electronics
company Regiser SA bankrupt, approved a petition filed by Daniel
Forte on non-payment of debt amounting to US$7803.03, reveals La
Nacion.

Assisted by Dr. Mendez Sarmiento, Clerk No. 12, the court
appointed Mr. Ruben Suez as receiver of the Company. Mr. Suez
will verify creditors claims until May 27, 2004. Creditors of
Regiser must submit their proofs of claim for authentication
before the said deadline to qualify for repayment.

CONTACT:  Regiser SA
          Tinogasta 4474
          Buenos Aires

          Ruben Suez
          General Cesar Diaz 2324
          Buenos Aires


REYCOR: Court Rules In Favor of Creditor's Request
--------------------------------------------------
Cartbox SA successfully sought for the bankruptcy of cardboard
producer Reycor SA, says La Nacion. Judge Braga of Buenos Aires
Court No. 22 granted Cartbox's petition for bankruptcy, which
was filed on Reycor's failure to pay US$27,000 of debt. Assisted
by Clerk No. 44, Dr. Julianelli, the court appointed Raul
Pereyra as receiver, who will verify creditors' claims until May
28, 2004.

The bankruptcy case will conclude with the liquidation of its
assets to repay creditors.

CONTACT:  Reycor SA
          Maipu 4293, piso 3ø, "5"
          Buenos Aires

          Raul Pereyra, Receiver
          Parana 467, piso 7ø, "27"
          Buenos Aires


S.U.T.E.R.: Local Court OKs Reorganization Petition
---------------------------------------------------
Tribunal civil y comercial No. 14 of Mar del Plata granted
S.u.t.e.r. y H.s. approval to a petition to start a
reorganization process, reports Infobae. The Court, assisted by
Clerk No. 14, appointed Mr. Ruben Adolfo Vazquez, as receiver
who will authenticate creditors' proofs of claim until May 6,
2004.

Important dates, such as the deadline for the submission of the
necessary reports, as well as the schedule for the informative
assembly will be announced shortly.

CONTACT:  S.u.t.e.r. y H.s.
          14 de Julio 1849
          Mar del Plata

          Ruben Adolfo Vazquez, Receiver
          25 de Mayo 2980
          Mar del Plata


SURYA: Declared Bankrupt by Court
--------------------------------
Surya S.A. will now undergo bankruptcy proceedings after Buenos
Aires Court No. 2 declared it "Quiebra." According to Infobae,
the Company will proceed with the bankruptcy process with Mr.
Mario Norberto Aragon as receiver, who will authenticate
creditors' proofs of claim until May 14, 2004.

With assistance from Clerk No. 4, the court set the schedules
for the submission of the individual and the general reports on
July 12, 2004 and August 20, 2004, respectively.

The case will close with the liquidation of the Company's assets
to repay creditors.

CONTACT:  Surya S.A.
          Pumacahua 1415
          Buenos Aires

          Mario Norberto Aragon, Receiver
          A Alsina 1535
          Buenos Aires


TRANS SERVIS: Court Declares Company Officially Bankrupt
--------------------------------------------------------
Trans Servis Combustibles S.A. is now "Quiebra" - meaning
bankrupt, says Infobae. Buenos Aires Court No. 9, which is aided
by Clerk No. 18, decreed the Company's bankruptcy and appointed
Mr. Miguel Angel Troisi as receiver for the Company.

Mr. Troisi will be reviewing creditors' claims until June 16,
2004. Analyzing these claims is important because the outcome of
the process will determine the amount each creditor will get
after all the assets of the Company are liquidated at the end of
the bankruptcy process.

After verifications are completed, the receiver will submit the
individual reports to court on August 12, 2004 and the general
report on September 23, 2004.

CONTACT:  Trans Servis Combustibles S.A.
          Av Cordoba 838
          Buenos Aires

          Miguel Angel Troisi, Receiver
          Cerrito 146
          Buenos Aires


VICTORIO CARONELLO: Court Reviews Bankruptcy Petition
-----------------------------------------------------
Victorio Caronello e Hijos SA submitted to Buenos Aires Court
No. 18 a petition to undergo a reorganization process, reports
La Nacion. The Court is assisted by Dr. Estevarena, Clerk No.
35, in reviewing the Company's petition.

CONTACT:  Victorio Caronello e Hijos SA
          Esmeralda 339, piso 7ø "5"
          Buenos Aires


*Argentine Government To Meet With Bondholders
----------------------------------------------
The economy ministry said Tuesday the government will be meeting
four international groups out of 27 invited bondholder
representatives for talks over its US$88 billion in defaulted
debt, Reuters says.

The meetings will kick off on Wednesday with Italian group
Assotutella Consumatori. Local media has reported that IG -
Argentinien -- a German group of bondholders -- will also meet
this week with the government.

The meetings are due to end on Friday with the government's
meeting with The Global Committee of Argentina Bondholders, made
up of private and institutional investors from Italy, Germany,
France, Austria, Switzerland, Japan and the United States. The
group claims it represents investors holding US$37 billion of
Argentine bonds.

Acting International Monetary Fund head Anne Krueger has been
pressing Argentina to come up with an "offer that attains the
highest possible creditor participation."

Many of Argentina's creditors are demanding at least 65% of
their original investment back after the country defaulted on
its debt in January 2002. However, Argentina has only offered to
pay 25 cents to the dollar in compensation for the bad debt
dumped on its creditors, arguing that it cannot repay more
without endangering a faster-than-expected recovery from deep
economic crisis and worsening the condition of 50% of the
population subsisting on just a couple of dollars a day.

This effectively makes it tough for the two sides to meet the
government's June deadline for a restructuring deal.



=============
B E R M U D A
=============

FOSTER WHEELER: Files Proposed Equity for Debt Offer Terms
----------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced that it filed the
terms of its proposed equity for debt exchange offer with the
Securities and Exchange Commission (SEC). If the exchange offer
is executed as proposed and at minimum required participation
levels, it would reduce Foster Wheeler's existing debt by nearly
$500 million, extend the maturities on $150 million of debt to
2011 and reduce interest expense by approximately $30 million
per year. The exact amounts will depend on the terms of the
final offer, as declared effective by the SEC, and actual
participation levels.

"This filing marks an important step towards completing our
balance sheet restructuring," said Raymond J. Milchovich,
chairman, president and chief executive officer. "We appreciate
the confidence in the company's future that will be expressed by
those investors who accept equity in the newly capitalized
company in exchange for debt. Upon completion of the exchange as
proposed, our debt would be reduced by nearly $500 million with
a corresponding reduction in interest payments. The debt
reduction, together with the sale of new notes to retire our
funded bank debt, would eliminate any material scheduled debt
maturities over the next five years, improving our financial
position and providing financial flexibility as we move ahead.
Our goal is to complete the exchange offer by the end of May."

The proposed exchange offer, as described in the registration
statement filed with the SEC, includes the exchange of (i)
senior secured debt due 2005 for a combination of equity and new
senior secured debt due 2011; (ii) convertible debt and Robbins
bonds for equity; and (iii) trust preferred securities for cash
or equity at the option of the holder. The completion of the
exchange offer is subject to, among other things, clearance of
the registration statement by the SEC and state securities
commissions, and attaining certain minimum participation
thresholds.

As previously announced, Foster Wheeler has obtained a
commitment from a group of institutional holders of its debt
securities to purchase $120 million of new senior secured notes
due 2011, contingent on the closing of the exchange offer on
terms satisfactory to such institutional holders. The proceeds
will be used to repay the term and revolving debt outstanding
under Foster Wheeler's existing credit agreement.

"We believe we have built the foundation for successful
performance with the operational initiatives we have put in
place," continued Mr. Milchovich. "Foster Wheeler has a long
history of delivering exceptional quality, service and
technology to a sophisticated client base worldwide. The
significantly improved balance sheet from this recapitalization
will provide better support for our global operating companies
to compete favorably and to achieve their full business
potential."

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, oil and gas, petrochemical, chemicals, power,
pharmaceuticals, biotechnology and healthcare industries. The
corporation is based in Hamilton, Bermuda, and its operational
headquarters are in Clinton, New Jersey, USA. More information
is available about Foster Wheeler at www.fwc.com.



ARACRUZ CELULOSE: Continues to Improve Liquidity, Debt Profile
--------------------------------------------------------------
Highlights 1Q04

- Net revenues of US$255 million and net income of US$47
million, or US$0,46 per ADR

- Pulp market is showing signs of an early stage of a recovery.
Price increases were implemented in February, March and April.
As of April 1st, list pulp prices are US$565 in the US, US$550
in Europe and US$530 in Asia

- Continuous improvement in liquidity and debt profile, as of
March 31st cash investments equivalent to 1.5 times of next 12-
month debt amortization

- Guaiba unit (ex-Riocell) successfully integrated with
productivity gains

- Veracel: US$60 million first disbursement from BNDES and
construction on schedule

- Adjusted EBITDA of US$ 134 million, 7% higher than in the same
period of last year

- Average daily trade volume in the quarter of US$12.2 million,
125% higher than in same period of last year

Recent Developments

Commitment to continuously improve liquidity and debt profile

During the first quarter of the year Aracruz continued to take
advantage of the global liquidity in the capital markets and
improved further its debt profile (average maturity),
consistently with its long-term growth strategy.

Funding requirements in the amount of US$120 million for 2004's
first quarter were raised through trade finance loans with
maturities of up to four years.

The table below shows how liquidity ratios have improved since
the acquisition of Riocell (Guaiba unit) in the first week of
July 2003, which was initially financed through bridge loans
followed by long -term secured export notes issued in August
2003.

Ratios             Mar. 31,     Dec. 31,   Sept. 30,   Jun. 30,
                     2004         2003       2003        2003

Cash / 12-month
  debt amortization  1.53         0.94       0.80        0.80
Short term debt /
  Gross debt          18%          29%        34%         58%
Gross debt / EV*      28%          29%        38%         47%
Net debt / EV*        21%          22%        27%         26%

* EV= enterprise value= (net debt + market capitalization)

The table above includes 50% of Veracel's debt, on a proforma-
consolidated basis.

Management is committed to improve the Company's debt profile
and to keep adequate liquidity levels, equivalent to at least
12-month of debt amortizations in cash holdings, as shown above.

The current average cost of long-term dollar denominated debt is
5.9% p.a.

- Veracel - construction progress and funding releases

The overall progress of the project is going according to plans.
Based on current figures, about 39% of the total construction
has already been completed.

As previously informed, Veracel has committed long-term direct
funding from development banks in the amount of approximately
US$650 million (US$500 million from BNDES and US$150 million
from EIB plus NIB). During the quarter, BNDES made its initial
disbursement of US$59.7 million.

- Guaiba Unit (ex-Riocell) - successfully integrated with
productivity gains

After nine months in operation, the acquisition of the new unit
has proved to be successful. All departments and activities are
fully integrated, capital expenditures were according with
expectations, and no additional working capital was required.
Operating margins are in line or even better than before, and
productivity has increased in a sustainable way by 17%, from an
average of 1,035t/day in the first half of 2003 (before the
acquisition) to 1,209t/day now. Besides, the final output is
fully homogeneous today; being 100% bleached pulp.

Global Pulp Market Update

World economy has been growing in different speeds. The Asian
and the US economy are growing quickly, while European business
conditions have been improving modestly. This favorable economic
scenario is starting to show positive impact on paper and pulp
demand.

After slipping in January, world market pulp price recovered
since February of 2004, mainly driven by stronger demand in Asia
and especially in China. At the same time, pulp supply has been
at a normal level for softwood and tighter for hardwood.
Consequently, global pulp producers' inventories remained within
the normal range.

This scenario has allowed prices to increase in all markets.
Eucalyptus pulp price increases were announced and implemented
during the first quarter of this year, representing a net
increase of US$40/t to US$550/t (CIF Europe) as of April 1st. In
the American market eucalyptus list price for April is quoted at
US$565/t and in the Asian market at US$530/t.

Production and sales

Pulp production totaled 628,000 tons in the first quarter of
2004, compared to 497,000 tons in the same period of last year,
mainly due to the Guaiba unit volumes. A scheduled maintenance
downtime of 8 days in March was taken at Fiberline B in the
Barra do Riacho unit.

Paper production at the Guaiba unit totaled 11,838 tons in the
quarter, with a pulp consumption of approximately 10,551 tons.
Paper inventories were at 1,041 tons and paper sales totaled
11,687 tons.

Pulp sales reached 540,000 tons in the quarter, compared to
497,000 tons in the same period last year. At the end of March,
inventories reached 351,000 tons, or 51 days of production,
compared to 40 days at the end of December 2003.

The company expects to produce and sell 2,400,000 tons in 2004.
Although pulp demand has improved in the first quarter, sales
volume was impacted by the one-time event related to the
implementation of "supply chain approach" for the US customer
base. This new approach, coupled with the establishment of two
hubs in Asia (China and Malaysia), affected the pattern of our
inventory levels to around 50 days.

Aracruz's commercial strategy is focused on developing long-term
sales relationship with most of its clients. Therefore, a
longer-term sales distribution by region better reflects the
Company's strategy.

Income Statement - 1Q 2004

Average list pulp price in the quarter was $509/ton, compared to
$479/ton in the same period of last year, and lower than the
average list price of $518/ton of 2003's fourth quarter.

Net operating revenues totaled $255.2 million, or $37.6 million
higher than in the same period of 2003.

Net pulp operating revenues during the first quarter of 2004
were $244.2 million, compared to $215.2 million in the same
period of last year. Revenues increased as a result of higher
sales volume ($18.9 million) and higher net prices ($10.1
million).

Total cost of sales was $156.8 million in the first quarter of
2004, compared to $124.9 million in the same period of last
year.

Pulp production cost in the first quarter was $234/ton, compared
to $208/ton in the same period of last year.

Cash production cost in the first quarter was $159/ton, compared
to $122/ton in the same period of last year.

See table below:

Cash Production Cost                    US$ per ton
1Q03                                        122
Higher wood costs due to purchased
  wood and longer operating radius           19
Local currency appreciation against
  the dollar                                 13
Other                                         5
1Q04                                        159

The average exchange rate in the first quarter was approximately
R$2.895 per US$1.00 versus R$3.491 per US$1.00 in the same
period of last year, representing a local currency's
appreciation of 17%. The exchange rate volatility caused the
impact showed above, since approximately 60% of the Company's
cash production cost is correlated to local currency inflation.

The cash production cost in the first quarter of 2004 was
$159/ton, compared to $163/ton in the fourth quarter of 2003,
mainly as a result of higher dilution of fixed costs.

The Company expects to be self sufficient again in wood supply
by late 2005, and cash costs are expected to decline by
approximately 15% from current levels in 2006.

Selling and distribution expenses were $11.7 million, or $4.2
million higher than in the same period of last year, mainly due
to higher sales volume, unloading expenses previously included
in freight cost, consolidation of Guaiba and adjustments related
to the supply chain approach.

Administrative expenses were $7.3 million, or $2.8 million
higher than in the same period of 2003, mainly due the local
currency appreciation against the dollar and several non-
recurring expenses such as consulting in Guaiba, legal services
and other.

Other operating expenses were $3.2 million, or $0.8 million
lower than in the same period of last year, mainly due to $3.0
million of tax credits of PIS/Cofins on depreciation, which were
partially offset by a higher provision of $1.0 million for
losses on ICMS credits and a lower reversal of a provision for
losses on inventory of $1.0 million.

Financial Income in the first quarter of 2004 was $10.7 million,
compared to $21.6 million in the same period of last year;
mainly as result of a lower average balance of cash investments
and tax credits coupled with lower interest rates during the
first quarter of 2004.

Financial Expenses were $28.3 million in the first quarter of
2004, compared to $17.1 million in the same period of last year.
The higher amount of "interest on financing" was mainly due to a
higher average debt balance.

(US$ million)                       1Q04      1Q03
Interest on financing               22.4      16.1
Taxes (PIS/COFINS and CPMF)          3.1       4.4
Interest on fiscal contingencies
  provisions                         2.6       2.5
Reversal of provision Selic
  interest on fiscal
  contingencies - income tax
  and social contribution                     (6.1)
Other                                0.2       0.2
Total                               28.3      17.1

Currency re-measurement resulted in a net gain of $0.3 million
in the first quarter of 2004, compared to a net gain of $10.6
million in the same period of last year, reflecting the lower
volatility of the local currency against the dollar. The closing
exchange rate on March 31, 2004 was R$2.9086 per US dollar.

Equity equivalence result from Veracel was a loss of $1.9
million in the first quarter of 2004, compared to $2.0 million
in the same period of last year. The Company has 50% controlling
stake in Veracel, see a synthetic proforma Veracel balance sheet
at the end of this release.

Income tax and social contribution in the first quarter of 2004
amounted to an expense of $9.7 million, compared to $31.3
million in the same period of last year. Given the fact that tax
charges are calculated based on Brazilian GAAP results, the
negative impact of the exchange variation in the first quarter
2004 contributed to its reduction, compared to the positive
impact in the same period of last year when using the Brazilian
GAAP.

Debt and Cash Structure

Gross debt was $1,312.3 million at the end of March 2004, or
$59.2 million lower than at the end of December 2003.

(US$ million)                       March 31,      December 31,
                                      2004              2003
SHORT-TERM DEBT                      234.5             392.1
Current Portion of Long-Term Debt    206.7             267.7
Short Term Debt Instruments           20.0             118.3
Accrued financial charge               7.8               6.1
LONG-TERM DEBT                     1,077.8             979.4
TOTAL DEBT                         1,312.3           1,371.5

Debt in local currency corresponds entirely to long-term BNDES
(Brazilian Development Bank) loans. Total debt maturity as of
March 31, 2004 was as follows:

(US$ million)         Local    Foreign        Total     %
                    Currency   Currency        Debt
    2004              31.4      178.8         210.2    16%
    2005              38.4       98.1         136.5    10%
    2006              38.5      226.4         264.9    20%
    2007              38.6      252.5         291.1    22%
    2008              36.6      160.7         197.3    15%
    2009              18.2       79.0          97.2     8%
    2010 and after     -        115.1         115.1     9%
    Total             201.7   1,110.6       1,312.3   100%

Cash investments, at the end of the quarter, totaled $355.6
million, of which $294.6 million were invested in local currency
instruments and $61.0 million invested abroad, mostly in US
dollar time deposits. Since Aracruz is a dollar-based company,
part of the local currency investments serve as hedging
instruments against the local currency portion of the gross
debt. The Company also uses dollar future contracts to adjust
its balance sheet currency exposure on a daily basis. The amount
of cash investments is targeted to equal at least twelve months
of future debt amortization.

Net debt (gross debt less cash holdings) was $956.7 million at
the end of the quarter, or $62.6 million lower than at the end
of the fourth quarter of 2003, mainly due to the positive
operating cash generation, which was partially offset by $15
million of Veracel's capital increase and $16.8 million of
capital expenditures. At the end of the quarter, the net debt to
total capital ratio was 34%.

EBITDA was $126.8 million in the first quarter of 2004, compared
to $121.1 million in the same period of 2003, as a result of
higher sales volume and higher pulp prices. EBITDA in last
twelve months was $504.4 million.

EBITDA margin was 50%, compared to 56% in the same period of
last year, a consequence of higher costs.

First quarter 2004 adjusted EBITDA, before other non-cash
charges, totaled $133.5 million, compared to $125.1 million in
the same period of last year, and resulted in an adjusted margin
of 52%. Adjusted EBITDA in the last twelve months was $547.5
million.

(US$ million)                      1Q 2004             1Q 2003
EBITDA                              126.8               121.1
Non-cash charges                      6.7                 4.0
Provision for labor indemnity         0.5                 0.2
Provision for loss on ICMS credits    5.7                 4.7
Provision (reversal) for loss
  on inventory                       (0.2)               (1.2)
Provision for a tax contingency       0.2                  -
Other                                 0.5                 0.3
Adjusted EBITDA                     133.5               125.1

Capital expenditures and investments as follows:

US$ million)    1Q 2004 2Q - 4Q 2004   FY 2004  2005   2006
2007

Maintenance
   investments
   - all mills    17        78           95      70     70
85
Veracel
  (Aracruz
  equity portion
  only)           15       100          115      10      -
-
Total             32       178          210      80     70
85

Stock Performance and Dividends

From December 31, 2003 to March 31, 2004, Aracruz's ADR price
increased 9.16%, from $35.04 to $38.25. In the same period, the
Dow Jones Industrial Average Index decreased 0.92% and the S&P
Paper and Forecast Index appreciated 2.45%.

Results According to Brazilian GAAP

The local currency consolidated results, according to Brazilian
GAAP - Corporate Law, was a net income of R$148.5 million in the
quarter. Aracruz has also publicly released in Brazil its
unconsolidated financial results, which under Brazilian law are
the basis for the calculation of minimum dividends and income
taxes. In the first quarter of 2004 Aracruz Celulose S.A.
reported an unconsolidated net income of R$139.6 million.

Additional Information

On April 29, 2004 the Shareholders' General Meeting will decide
on management's R$360 million (approximately $124 million)
dividend proposal. Dividend distribution is scheduled for May
2004.

Aracruz Celulose S.A., with operations in the Brazilian states
of Espirito Santo, Bahia, Minas Gerais and Rio Grande do Sul, is
the world's largest producer of bleached eucalyptus kraft pulp.
All of the highquality hardwood pulp and lumber supplied by the
company is produced exclusively from planted eucalyptus forests.
The Aracruz pulp is used to manufacture a wide range of consumer
and value-added products, including premium tissue and top
quality printing, writing and specialty papers. The lumber,
produced in a high-tech sawmill located in the extreme -south of
the State of Bahia, is sold under the brand name Lyptus to the
furniture and interior design industries in Brazil and abroad.
Aracruz is listed on the Sao Paulo Stock Exchange (BOVESPA), on
the Latin American Securities Market (Latibex) in Madrid - Spain
and on the New York Stock Exchange under an ADR level III
program (ticker symbol ARA). Each ADR represents 10 underlying
class B preferred shares.

CONTACT:  Mauricio Werneck & Denys Ferrez
          (21) 3820-8131
          invest@aracruz.com.br

          Citigate - Lucia Domville
          (1-201) 499-3548
          lucia.domville@citigatefi.com
          E-mail: www.aracruz.com.br


CEMAR: To End Sale With New Board Selection
-------------------------------------------
With the selection of a new board this week, Brazilian power
distributor Companhia Energetica do Maranhao (Cemar) is about to
wrap up its sale process, BNamericas says, citing local press
reports. US utility PPL Global acquired the company in a 2000
privatization but dropped the distributor in 2002 after posting
poor returns. Taken over by Electricity regulator Aneel, it was
sold to Brazil's SVM Participa‡oes e Empreendimentos, which has
committed to paying off Cemar's BRL502 million (US$172mn) debt
and turn the company around by 2012.


CESP: Repayment Due Date Moved, New Government Loan Detailed
------------------------------------------------------------
Reuters reveals that Brazilian power company Companhia
Energetica de Sao Paulo (Cesp) is set to receive a fresh BRL1.2
bilion (US$414 million) government loan after the announcement
Tuesday by the National Economic and Social Development Bank
(BNDES) that it has postponed the power utility's debt repayment
deadline by a month.

Controlled by the Sao Paulo state government, heavily indebted
Cesp worked out the 1.2 billion reais loan deal in 2002. "It is
an agreement they had with the previous (federal) government,
but it had a bureaucratic impediment because of this debt with
BNDES," a BNDES official said. "With the federal government
funds, the company will now have to pay BNDES."

With the postponement, Cesp now has to make its BRL24 million
payment before May 15, instead of April 15 as initially agreed,
according to a BNDES spokesman.


EMBRATEL: Telmex Confident On Purchase Amid Challenge
-----------------------------------------------------
Despite the continuing challenge posed by Brazilian consortium
Calais Participacoes' enhanced bid for Brazil's Embratel,
winning bidder Telefonos de Mexico (Telmex) expressed confidence
it would still be able to complete its acquisition of Brazil's
no. 1 long-distance operator, reports Reuters.

"We are confident that the deal will be concluded and there will
not be any problem," Telmex vice president Jose Formoso Martinez
said after a congressional hearing on the sale.

Last month, Telmex has submitted the winning bid for the
controlling stake of MCI (formerly WorldCom) in Embratel to the
tune of US$360 million. However, rival bidder Calais questioned
the deal, saying it should have won since its offer was US$190
million more than Telmex's. In an attempt to derail the sale,
last week sweetened its bid by guaranteeing MCI US$360 million
even if Brazilian regulators block its offer, and offered US$550
million for Embratel if they wrap up their agreement without any
legal hitches.

MCI has said the initial Calais offer was turned down because it
believed it would face regulatory hurdles. Under Brazilian law,
the three fixed-line companies-- Tele Norte Leste Participacoes
(Telemar), Brasil Telecom Participacoes and Spain's Telefonica
that make up Calais are barred from owning Embratel's concession
to offer local and long-distance services.

However, the fixed-line companies insist they would not hold the
concession but their fourth partner, telecom infrastructure
company Geodex. The group also intends to split Embratel,
leaving the long-distance operator with Geodex and the company's
data transmission with the fixed-line firms. "The Calais offer
to buy Embratel is bigger and better than any other received by
MCI," Calais said in a statement Tuesday. "Furthermore, it does
not represent any type of regulatory risk."

Nevertheless, Embratel has said that Telmex has added a clause
to its bid allowing it to withdraw its offer should the U.S.
bankruptcy court studying the deal fail to approve the sale by
April 28. Last week, the U.S. court overseeing MCI's bankruptcy
proceedings put back an audience to evaluate the Embratel sale
by two weeks to April 27. That gave MCI's creditors more time to
study the offers, including the enhanced Calais bid.



=========
C H I L E
=========

METROGAS: Assures Steady Gas Supply
-----------------------------------
Chilean gas distributor Metrogas said in a statement that it is
not expecting any problems in supplying its 300,000 residential
and commercial clients in central Chile this winter despite
Argentina's decision to reduce gas exports to Chile, according
to BNamericas.

With a propane back-up system that would allow it to inject
460,000 cubic meters a day (cm/d) of gas into its network even
in the event of further restrictions on gas supplies, Metrogas
has also ruled out rationing gas to its clients, the statement
said. However, it added that gas supplies to its industrial
clients that have interruptible contracts could be affected.

"In case of a force majeure situation that directly affects
Metrogas or its producers and transporters of natural gas, it is
considered an option to suspend the supply of gas without the
right of compensation on the part of the client," the statement
said.

According to the statement, Metrogas, which has propane supply
contracts with Gasco and state oil company Enap, would be
initially assuming the higher cost of using propane, then if
propane supplies become necessary on a permanent basis, would
pass it onto consumers. In order to maintain production of city
gas, the company could also use naphtha to replace natural gas,
the statement said.

Metrogas says that with its gas restrictions, Argentina is in
violation of the principle of "non-discrimination" enshrined in
a 1995 bi-national agreement, which stipulates that Chilean gas
distributors should only be affected by gas supply rationing in
the same proportion as Argentine distributors are affected,
which has not happened in this case because the Argentine
distributors are being favored at the cost of Chilean
distributors.

The statement said the company has asked the Chilean government
to demand Argentina's repeal or modification of resolution 265
to incorporate the non-discrimination principle.

Metrogas has contracts for a total 3.96mcm/d with Argentina's
Aguada Pichana consortium of Total, Panamerican and Wintershall,
and the Sierra Chata consortium of Petrobras, Mobil, Canadian
Hunter Argentina and Atalaya Energy. It also has long-term firm
gas transport contracts with the GasAndes pipeline and Argentine
gas transporter TGN.

The gas distributor has also helped finance a US$7.6 million
project to expand TGN's Centrooeste pipeline capacity by
303,000cm/d, which will be available to Metrogas as of June 1,
2004, said the statement. It added that the additional transport
capacity the pipeline is expected to provide would allow
Metrogas to meet forecast demand growth in Chile through 2005.



=============
E C U A D O R
=============

PETROECUADOR: 1Q Exports Down 7%
--------------------------------
The oil export revenues of Ecuador's state oil company
Petroecuador between January and March dropped by 7% at US$283
million compared to US$305.6 million for the same period last
year, reports Dow Jones. In a statement Tuesday, Petroecuador
said that in terms of volume, Ecuador exported 9.7 million
barrels of crude oil in the first quarter of 2004, a 6% decrease
from the 10.3 million barrels exported in the first quarter of
2003. Meanwhile, the average price of crude in the first three
months rose 2% to $30 a barrel from $29.40 a barrel in the same
period of 2003.

Petroecuador's oil exports were also affected by the company's
suspension of exports for 18 days last month because of damages
a landslide had wrought on the government-operated Sote
pipeline.

Typically, Petroecuador exports some 132,000 barrels of crude
daily, mostly to the U.S. Of its exports last year, 56% went to
the U.S., Asia got 21% and Latin America and the Caribbean
picked up the rest.

Oil is Ecuador's main export, netting US$2.37 billion last year.
The oil sector represents around 15% of the Andean country's
gross domestic product and a third of government revenue.



=====================
E L   S A L V A D O R
=====================

TESAL: Keeps Fitch "B" Rating; Cash Flow, Debt Level Troubling
--------------------------------------------------------------
In a statement, Credit ratings agency Fitch Centroam‚rica said
the national risk rating for mobile operator Telef¢nica M¢viles
El Salvador (Tesal) will be kept at B (slv) with a negative
outlook, BNamericas reports. A unit of Spain's Telef¢nica
M¢viles, Tesal was downgraded by Fitch in January from BB (slv)
to B (slv), and had its share rating increased from level 4 to
level 5.

Fitch cited factors such as the high degree of competition in
the market, Tesal's cash flow problems, and its high debt level
as the reasons why the mobile operator's rating has not been
restored to its previous level. These factors, according to the
agency, are not expected to diminish in the short term.

With its plans announced last month to build a US$40mn GSM
network to operate alongside its existing CDMA one, Tesal's debt
levels are expected to be pushed higher by the financing
involved in the infrastructure.



===========
M E X I C O
===========

AEROMEXICO: Fitch Maintains 'B+' Outlook Stable Rating on Debt
--------------------------------------------------------------
Fitch Ratings has withdrawn the 'A-' rating on Aeromexico's
1999-1 US$65 million international airline ticket receivables
transaction. This action follows the company's prepayment of
principal and interest on April 5, 2004 and Fitch's receipt of
notification from the Trustee that the outstanding balance
payment of approximately US$34 million was made to the
noteholders.

The securitization of international airline ticket receivables
employed a structure that included several risk mitigating
factors: an offshore collection account, a reserve account,
sufficient over-collateralization and periodic performance
tests. The deal also benefited from an underlying surety bond
provided by Centre Solutions Limited (Centre), which
unconditionally and irrevocably guaranteed any shortfalls in the
timely payment of interest and principal for the life of the
transaction. These factors let Fitch feel comfortable
maintaining a rating on the securitization that is higher than
the stand-alone corporate rating of 'B+'.

Centre is ultimately a wholly owned subsidiary of the Zurich
Financial Services Group (ZFS) of Zurich, Switzerland. Zurich
Insurance Company (ZIC) is ZPS' lead property/casualty insurance
subsidiary. Although the Centre insurance helped keep the rating
of the deal high, and despite the positive performance of the
Aeromexico receivables, Fitch downgraded its rating over the
years as the ZFS organization showed unfavorable operational
trends and deterioration in financial strength, as well the
closer link between ZIC and Centre resulting from Centre's
restructuring in early 2003.

Despite the downgrades, this transaction performed within all
guidelines of the structure, such as maintaining high
collections to stay well above the debt service coverage ratio
and maintaining the required reserve account. Fitch will
maintain its 'B+' Outlook Stable rating on the senior unsecured
foreign currency debt of Aeromexico.

CONTACT:  Jennifer Conner +1-312-368-2080, Chicago
          Giovanna Caccialanza +1-212-908-0898, Chicago

MEDIA RELATIONS: James Jockle +1-212-908-0547, New York


AVANTEL/ALESTRA: Backs Bypass Practices Termination
---------------------------------------------------
Claiming that the existing proportional return system has
already outlived its usefulness, Mexican telephone firm Avantel,
along with fellow operator Alestra have called for an end to the
system that allows other companies, those from the United States
in particular, to use their infrastructure as a way of avoiding
the payment of interconnection charges, says the El Universal
daily.

Although the system, according to Avantel, ensured transparency
at first, this is no longer the case. "The system of
proportional returns fulfilled the needs at the time. At the
current juncture, given the technological changes, the arrival
of new services and the increasing number of competitors,
transparency has been lost and it [the system] finds itself
maxed out," claims Avantel.

The company also said that by-pass practices will be inhibited
if each operator negotiates its own liquidation costs,
considerably reducing this problem. "When a businesses can
negotiate its own international telephone fees, it can offer the
market better prices, according to its competitive advantages."

For its part, Alestra added that while it is necessary to put a
stop to the proportional return system, an ample transition
phase should but put in place so that that it could be gradually
retired.


CFE: S&P Expects Alternate Solution to Debt Financing
-----------------------------------------------------
Mr. Santiago Carniado of ratings agency Standard & Poor's said
Mexican power company Comisi¢n Federal de Electricidad (CFE)
should find alternative means of attracting private investments
to maintain the financing it requires, according to an El
Economista report.

The company's issue of stock certificates may have generated
interest, but debt through the domestic market route, on which
CFE has been solely dependent on for eight years, is not healthy
because of its heavy growth rate, said Mr. Carniado. CFE also
considers the domestic market to be an alternative source for
financing for its Deferred Investment Projects in Spending
Registers (Pidiregas).

To date, the CFE has accumulated MXN2 billion (US$177.7 million)
in debt, with some MXN11.3 million (US$1 million) to be added
this year for the 17 projects that fit into the category of
public financed projects (OPF).

Between 2002 and 2003, Pidiregas expanded by 106%, rising from
MXN1.85 billion (US$164.4 million) to MXN3.86 billion (US$343.1
million).

Mr. Carniado said that while interest rates in the domestic
market remain attractive, the CFE will continue with its stock
certificates, although it should realize that this market has
its limits.


HYLSAMEX: Share Price Increases With 1Q Higher Forecast
-------------------------------------------------------
After Mexican steel maker Hylsamex's announcement Monday it
expects first-quarter earnings before interest, taxes,
depreciation and amortization (EBITDA) of US$110 million, the
company's shares rose more than 6% the following day, says
Reuters.

"Basically, yesterday Hylsamex came out with first-quarter
guidance that was a lot better than expectations, and for that
reason that stock is soaring," one trader said.

Hylsamex's updated 1st quarter Ebitda forecast Monday was higher
than its March expectations of US$70-80 million. It cited higher
prices. The steelmaker also said sales of 788,000 metric tonnes
of steel in the quarter would bring in revenue of US$461
million.

In solid volume, Hylsamex B series shares gained 6.24% in early
trade to MXN13.80, levels not seen since September 2000.
Meanwhile, its recently-launched CPO series shares were up 6.71%
at a record high of MXN14. The company's share price increase
also boosted the shares of Alfa, Hylsamex's majority
shareholder. The Mexican conglomerate's stock was up 1.76% at
MXN43.90, at 12-month highs.

Alfa is scheduled to report its results for the first quarter,
including Hylsamex's numbers, on April 29.

Alfa is in the process of spinning off its majority stake in
Hylsamex, which had been struggling for years to make a profit
amid weak metals prices. Steel prices have risen sharply in
recent months with solid demand from Asia, especially China.



                            ***********


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